USDA FOODS GLOSSARY OF TERMS
AGREEMENT – USDA FOODS, PROCESSING: A legal document entered into between a processor and a distributing agency or eligible recipient agency that provides for the further processing of USDA Foods. Processing A processing agreement is also referred to as a processing contract.
ALLOCATION: The method of notifying FNS Regional Offices and distributing agencies of the amounts of USDA Foods purchased for eligible recipient agencies and the shipping periods for these USDA Foods.
ALTERNATE PROTEIN PRODUCT (APP) TEXTURED VEGETABLE PROTEIN: A product that can be used to satisfy all or part of the meat/meat alternate requirement of the Child Nutrition meal pattern requirements when combined with meat, poultry, or seafood. Vegetable protein products are safe and suitable edible products produced from vegetable (plant) sources, including, but not limited to soybeans, peanuts, wheat, and corn. Also know as: Textured Vegetable Protein (TVP), VPP, SCP.
BY-PRODUCTS: Products other than the specified end products produced during processing. If by-products are sold or used by the processor, their net value must be credited to the State Distributing Agency (SDA) or Recipient Agency (RA). Processors who do not sell or use any resulting by-products are not required to credit the SDA or RA for the value of the by-products. In these instances, a processor arranges for the destruction of the by-product and incurs any costs associated with its destruction. Credit arrangements for by-products between the SDA or RA and the processor must be established prior to any processing, documented as part of the agreement, and made available to the grader.
CHILD NUTRITION PROGRAMS: Refers collectively to the National School Lunch Program, the School Breakfast Program, the Summer Food Service Program for Children, and the Child and Adult Care Food Program.
COMMINGLE: To store, combine, or blend commercial food and substitutable USDA Food together into a single inventory at a processor’s plant.
COMMINUTED MEAT: An edible product resulting from the mechanical separation and removal of most of the bone from attached skeletal muscle of livestock or poultry carcasses. Comminuted meat can also be called mechanically de-boned meat (MDM).
CONDEMNED MEAT: Meat or poultry that has been determined to be unfit for human food due to adulteration, disease, contamination, or other conditions rendering it unusable for human consumption. Condemned meat or poultry can also refer to product that has fallen on the floor or was improperly handled during production.
CONSIGNEE: The DPI, recipient agency, commercial warehouse, etc., that physically accepts delivery of the foods by railroad car, truck, or tractor trailer shipment. A receipt is signed to verify the acceptance of a food shipment, the quantity, and the condition in which it was received.
DAMAGED FOODS: Foods found to be infested, deteriorated, or contaminated as the result of improper storage or latent defects for which the vendor, processor, recipient agency, DPI, etc., is responsible. Over/Short/or Damaged Report (FNS-57): A form which consignees use to report overages and shortages in a shipment and USDA Foods damaged in transit.
DEPARTMENT OF PUBLIC INSTRUCTION (DPI): The agency, usually an agency of State government, which enters into an agreement with FNS for the distribution of USDA Foods to eligible recipient agencies.
DETENTION CHARGE: A penalty charge assessed by motor carriers or piggyback companies for detaining equipment beyond a specified free time. Mechanical detention occurs when rail cars are detained beyond a specified free time.
DIRECT SHIPMENT: Food ordered by the DPI to be shipped directly from the USDA vendor to the processor, rather than shipped to DPI’s or recipient agency’s storage facility. Since the normal shipping practice is to ship foods to the DPI, this is sometimes called a “diverted shipment,” “direct diversion” or “direct delivery."
DISTRIBUTING AGENCY: The agency, usually an agency of State government, which enters into an agreement with FNS for the distribution of USDA Foods to eligible recipient agencies.
DISTRIBUTION CHARGE: DPI charges to recipient agencies for costs related to intra-state storage and distribution of USDA Foods.
DISTRIBUTOR: A commercial food purveyor, who purchases, receives and/or stores commercial food products. Distributors in turn, sell, deliver, and bill the recipient agency or the DPI for the goods and/or services provided.
DIVERSION: A food shipment that has not been received (still in transit) that is rerouted to another location or State DPI.
DONATED FOOD: Food donated or available for donation by USDA to eligible recipient agencies. Donated food is also referred to as “USDA Foods" (formerly called “commodities”).
ENTITLEMENT FOODS: Values of foods that are “charged” against DPI’s or recipient agency’s level of USDA Foods assistance. The values of bonus USDA Foods do not reduce the entitlement funds.
FAIR SHARE: A proportional quantity of an available USDA Food. Distributing agencies are offered a fair share of the total amount of a given food item that is calculated based on DPI’s percentage of the national entitlement.
FNS: FOOD AND NUTRITION SERVICE: The USDA Food and Nutrition Service administers several programs that provide healthy food to children including the National School Lunch Program, the School Breakfast Program, the Child and Adult Care Food Program, the Summer Food Service Program, the Fresh Fruit and Vegetable Program, and the Special Milk Program.
FSA: FARM SERVICE AGENCY: The USDA agency responsible for acquiring products such as grain, dairy, peanut, and oil products under price-support activity.
FOOD SERVICE MANAGEMENT COMPANY: A commercial enterprise or a nonprofit organization that is, or may be, contracted with by a recipient agency to manage any aspect of its food service in accordance with 7 CFR Parts 210, 220, 225, 226, and/or 250.
FREE-ON-BOARD (FOB) DESTINATION: A method of pricing in which a processor includes the transportation charges to a specific destination for a product. The processor is responsible for arranging and paying for transportation under this method of pricing. See definition of Free on Board Plant.
Free-On-Board (FOB) Origin: Title transfers at the point of origin. USDA is responsible for arranging and paying for transportation under this method.
Free-On-Board (FOB) Plant: A method of pricing in which a processor excludes the transportation charges on a product. Transportation charges are paid by the recipient agency. See definition of Free on Board Destination.
FULL SUBSTITUTION: A processor can substitute commercial food for USDA Foods (except beef, pork, and poultry on a limited approval basis) without restriction, so long as the substitute food is of the same generic identity, equal or better quality, and of domestic origin. Fully substitutable foods are subject to the 100% yield requirement.
GROSS PRICE: Under processing, the price paid by the contracting agency before the value of USDA Food used in the production of the end product is deducted.
INVENTORY: The accounting of USDA Foods for which the DPI, a recipient agency, or processor is liable or responsible. In processing, the inventory can include food in physical inventory (on hand), in finished foods, or in book inventory. Processors who choose to deliver finished product before receiving USDA Foods may encounter negative inventory. The processor does this at his/her own risk and USDA is not required to make the processor whole. See the definition of Perpetual Inventory.
KANSAS CITY COMMODITY OFFICE (KCCO): An office of FSA that purchases grain, dairy, peanut, and oil products, under price-support authority and makes these products available to FNS outlets. These products may also be purchased by KCCO with FNS funds. KCCO also arranges shipments and makes payment for all USDA Foods distributed through FNS food assistance programs.
MGC-44 (fka/LS-44), USDA FOODS MEAT PRODUCTION INFORMATION FORM: A red meat
grading certificate issued by AMS grading that accompanies the monthly performance report. It indicates the total pounds of USDA Food put into production and the number of cases and/or pounds of end product produced from that starting weight.
NET CASE PRICE: The price of a processed end product paid by the recipient agency after the value of USDA Food contained in the end product has been deducted from the gross price.
OPTION 1: School Food Authorities (SFAs) will select this option to continue with the State-wide processing program of 15 core State-processed products.
OPTION 2: SFAs will choose this option to divert raw bulk USDA Foods to selected vendors and self determine processed end-products.
PERPETUAL INVENTORY: A daily accounting record of the receipt and usage of USDA Foods, which is updated with each transaction of receipt or usage. Perpetual inventory tracks on paper the amount of USDA Foods that should be in physical inventory at any given time and is periodically reconciled with
physical inventory.
PRODUCTION RECORDS: Records kept by the processor that document the production of the finished end product. The records show the types and amounts of ingredients used to produce the end product and the amount of end product produced.
PRODUCTION RUN (RED MEAT AND POULTRY): Term used to describe a specified manufacturing period. In most cases, a production run is based on each end product manufactured as stated on an individual MCG-44 for red meat (beef or pork) or an individual grading certificate for poultry. The exception to this practice is when production occurs over two or more days and two or more MCG-44s or grading certificates are generated.
PURCHASE ORDER NUMBER: A unique number assigned to each shipment of food. Each purchase order specifies the State, quantity, shipping period, and destination of a shipment. Multiple purchase orders may be included on a food requisition.
PY 209: The poultry production’s grading certificate that shows how many pounds were put into production and what finished products were produced.
PY 210: The poultry grading certificate that shows the incoming weight of the USDA purchased load.
QUALITY CONTROL PLAN: A processing company’s plan that assures that the products produced meet minimum specifications for quality, pack size, and content.
RA: RECIPIENT AGENCY: Agency that participates and receives reimbursement and/or USDA Foods through participation in the federal Child Nutrition Programs.
REGULATIONS: SECTION 32: Section 32 of Public Law 74-320, as amended, authorizes USDA to purchase nonbasic perishable foods available under surplus-removal operations, for the purpose of encouraging the domestic consumption of such foods by diverting them from the normal channels of trade or commerce. This group of USDA Foods includes fruits, vegetables, chicken, poultry, beef, and eggs.
REGULATIONS: SECTION 416: Section 416 of the Agricultural Act of 1949, as amended, authorizes USDA to donate basic nonperishable foods acquired through Federal price-support operations for use by needy persons, for use in nonprofit school lunch programs and nonprofit summer camps for children and for use in charitable institutions to the extent that needy persons are served. This group of USDA Foods includes cheese, flour, oil, dried beans, pasta and other grain items.
REWORK: Wholesome, salvageable product generated during a production run that is not acceptable as the specified product stated on the end product data schedule. Product such as broken patties or nuggets, or other defects such as missing breading, lumps, and ridges would be classified as rework product. Rework may NOT contribute to the yield achieved during a production run.
SDA: STATE DISTRIBUTING AGENCY: The state agency(ies) that administers the various federal Child Nutrition Programs for that particular state.
SHIPPING PERIOD: A specified time frame for USDA’s vendors to ship the USDA Food. The length of the shipping period varies with the type of USDA Food being shipped and the mode of transportation.
SLIP SHEET: A thin fiberboard or corrugated cardboard sheet, used instead of a pallet, commonly "48” x "40” with a lip on one end and one side, on which product is stacked for shipment. The purpose of the lip is to provide a grasping point for the push-pull attachment.
SPECIFICATION: A detailed description of the product which vendors to USDA must meet when selling foods to USDA. Distributing agencies or recipient agencies may also use end product specifications in issuing bids for processed end products that utilize USDA Foods.
STATE-PROCESSED USDA FOODS: Bulk USDA Foods that are ordered by DPI and shipped directly from a USDA vendor to a processor. Bulk USDA Foods are further processed into end products, which have been determined through a state-wide bid process. The finished end products are shipped from the processor to the state-contracted warehouse and are offered to recipient agencies along with the “brown-box” USDA Foods.
15 CORE STATE-PROCESSED USDA FOODS: Effective school year 2015-2016, DPI will be offering 15 core State-processed USDA Foods. These 15 products were selected by the Wisconsin Task Force on USDA Foods, based on recipient agencies top demand and usage.
SUMMARY END PRODUCT DATA SCHEDULE (SEPDS): A compilation or summary of information contained on end product data schedules.
TRUCK LOT: A quantity of food equal to a truck shipment. Generally, a trucklot is equal to approximately 40,000 pounds of USDA Food and contains between 700 to 1,400 cases of food, depending upon the food item. This quantity can be found in the USDA Foods file.
USDA FOODS, BONUS: A food item not charged against entitlement or against a program’s appropriated funds. These foods are acquired through the price-support operations of the Commodity Credit Corporation or surplus-removal operations of AMS.
USDA FOODS FILE: A USDA computer generated print-out that lists the USDA Food items, pack sizes, the most recent prices per pound, unit gross and net weights, material identifications (IDS), and other information. The November 15 USDA Foods File is used to determine the initial contract value for each USDA Food for the upcoming agreement year that begins on the following July 1st.
3